Which of the following is descriptive of rent-seeking?
A)A domestic company hires a lobbyist to go to Washington, D.C.and try to influence legislators to impose tariffs on Brazilian (imported) goods that compete with the good it produces.
B)Company X hires an accountant to work for it.
C)Jill pays her apartment rent a few days late each month and usually ends up having to pay a late fee.
D)This year Bob earned a large profit from the small business he owns and operates.
E)b and d

Question

Quizplus · Accepted Answer

Rent-seeking involves seeking to increase one's share of existing wealth without creating new wealth. In choice A, hiring a lobbyist to influence legislation for tariffs to reduce competition is a classic example of rent-seeking, as it aims to gain economic advantage through political influence rather than by creating new value.

Which of the Following Is Descriptive of Rent-Seeking